3 Ways Investors Can Boost Their Returns: DBS Multi-Currency Account.

Apple Inc. has just crossed the trillion dollar market capitalisation mark.

That is US$1,000,000,000,000.

I hope I have gotten the number of zeroes correct.

I am proud of having contributed to Apple’s earnings over the years and now, I bask in a tiny bit of that glory.

Today, technology companies are powering the world’s economy and significantly influencing our daily lives. I cannot function without Google products and I find it difficult to communicate with people without Facebook services.

Many investors have recognised this trend and hopped onto the bandwagon, and any portfolio today that does not have exposure to tech stocks such as Facebook, Amazon, Apple, Netflix and Google (FAANG) would risk underperforming. Aside from these commonly known tech stocks, many Chinese companies like Alibaba, Baidu and Ctrip are traded in USD on the U.S. stock exchanges as well.

If you are into these tech stocks or any other U.S.-listed stocks or Exchange Traded Funds (ETFs), DBS has a suite of products that might benefit you.

#1 – Earn 2.5% p.a. on your USD fresh funds deposits

If you are investing in USD-denominated stocks frequently or in large amounts, it would make sense to retain USD in a deposit account instead of converting them each time you buy and sell stocks. This would help avoid unnecessary foreign exchange spreads during these conversions.

The good news is that DBS is currently offering a 2.5% per annum interest rate on USD fresh funds (min. US$10,000, max US$1,000,000) deposited into the DBS Multi-Currency Account (MCA). You’ll even receive a S$25 FX rebate if you convert the USD from SGD for the promo!

There are some terms and conditions that you should be aware of.

Firstly, the 2.5% p.a. interest rate is only applicable for 4 months from 1^st September 2018 to 31^st December 2018. In other words, you must make the deposit and register for this program before 31^st August 2018 to qualify.

Secondly, the fresh funds amount must remain intact for the full 4 months, before the interest is credited by 31 Jan 2019.

If you do not have an account, for a promotional period you can open one online and receive a cash gift of S$20.

#2 – Reduce your exposure to foreign exchange fluctuations with an MCA-linked DBS Vickers account

Apply for a DBS Vickers online trading account, which will be linked to your DBS MCA, to invest directly in 7 key markets, including the US.

Let’s say you’re looking to buy a U.S. stock. Fund your MCA when the exchange rate is favourable and hold USD in your MCA wallet. When the stock reaches your target price, fund your purchase directly from your MCA wallet.

Likewise, when selling your U.S. stock, receive the proceeds of your sale in USD, which you can hold in your MCA and exchange it for your home currency when the rate is favourable, or for any of the other 12 currencies available.

#3 – Enjoy higher interest rates on your DBS Multiplier Account

I am a fan of the DBS Multiplier Account and am very happy with the bonus interest I receive every month. In fact, the DBS Multiplier Account works like a MCA as well, which means you can deposit various currencies, including both SGD and USD deposits in one DBS Multiplier Account!

Be sure to open the DBS Multiplier Account so that you can get even more out of your stock transactions with DBS Vickers. Buying stocks online is one of the eligible activities that will help you qualify for higher interest rates on your SGD deposit (capped at S$50,000) in the DBS Multiplier Account.

For example, if you credit your salary to any DBS/POSB deposit account (mandatory to enjoy DBS Multiplier’s higher interest rates) and have also bought US$10,000 worth of stocks, you would qualify for 1.9% per annum interest for that particular month! Assuming you have S$30,000 in your DBS Multiplier Account, that would translate to S$48.36 worth of interest for that month alone. You can play around with the DBS Multiplier Account calculator here and estimate the potential interest you can receive.

(The above assumes (1) Salary of S$3,000 credited each month + (2) Purchased US$10,000 worth of stocks, + (3) S$30,000 deposits in the DBS Multiplier Account for a month of 31 days).

Investors, maximise your benefits with these accounts

Here is what you can do.

First, deposit minimum fresh funds of US$10,000 into the DBS Multi-Currency / Multiplier Account before 31^st Aug 2018 and register to qualify for the 2.5% per annum rate from Sep to Dec 2018. Your deposits will need to be maintained throughout this period.

To reap the maximum benefits as an investor, you should use the DBS Vickers and the DBS Multiplier (which works like a MCA) accounts.

Here is an estimate of the amount you can earn and save, risk-free:

• With a min. of US$10,000 fresh funds deposit, you’ll earn at least US$84.72 on your deposit over 4 months with the DBS MCA USD Deposits promotion
• Receive a S$25 FX rebate when you convert a minimum of US$10,000 from SGD fresh funds for the 2.5% p.a. USD Deposits promotion.
• Save US$7 when you buy a U.S. stock for US$10,000 cash upfront on DBS Vickers

You would have gotten back more than S$100 in a matter of months with only one stock trade, and perhaps even more if you trade frequently or in larger amounts. Forget that this does not even factor in the cost savings accrued from keeping your cash in USD and hence avoiding foreign exchange losses from frequent conversions. Assuming you have S$30,000 deposited in your DBS Multiplier Account, with salary credited and the above stock transaction for the month, you’ll also earn an estimated S$48.36 of additional interest.

Register for the DBS MCA 2.5% USD Fresh Funds promo now. You can thank me later.

P.S: Don’t have an MCA yet? Sign up online and receive a S$20 cash gift!

Terms and Conditions apply. SGD deposits are insured up to S$75k by SDIC.

This article was written in collaboration with DBS. Views expressed in the article are the independent opinion of the author.